Message from the Chairman

November 6, 2007

Dear Shareholder,

On September 18^th, a hearing took place in San Francisco in Judge Patel’s courtroom (our Federal Judge in the Apple case). The purpose of the hearing was for both sides to argue in-person their respective positions regarding two pending Summary Judgment motions which had previously been filed by Apple (and responded to by Burst). The hearing, which lasted about 4 hours, ended with Judge Patel asking Apple if it planned on filing additional Summary Judgment motions. Apple indicated that it planned on doing so.

In fact, last week, on October 29^th, the deadline for filing despositive motions in our case, Apple filed 3 more motions for Summary Judgment asking that the court find our patents invalid, which we will oppose. The motions are available for viewing online. Burst has until November 19^th to submit to the court our replies to each of Apple’s 3 new Summary Judgment motions. While we proceed with the preparation of our responses, it is worth noting that the two Summary Judgment motions that were argued in court on September 18^th are still pending, meaning that (as of this writing) Judge Patel has not yet ruled on them. These rulings could come at any time.

In order to make it to trial, which is scheduled for end of February 2008, we will need to prevail at least in part on 4 of the currently pending Summary Judgment motions. The fifth motion, relating to laches, could result in Burst’s damages being restricted to those incurred since the filing of our lawsuit. While there are no guarantees of success, we believe we are in the right on all of these core issues and look forward to justice being served.

Attached, you will find Summary Financials for Q3 2007. You can access the complete financials on our website: www.burst.com.

Thank you for your continued confidence and support!

Sincerely,

Richard Lang Chairman, Co-Founder & CEO

This letter is a forward-looking statement for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations expressed herein regarding are based on reasonable assumptions, these forward-looking statements are subject to numerous uncertainties and risks and actual results and developments could differ from these expectations. We are not responsible for updating any such forward-looking statements.